Skip to main content

Breaking News
  • US would reassess assistance to Palestinians if new government formed under Hamas-PLO reconciliation pact, according to officials (Reuters)
  • Bribery trial of F1 boss Bernie Ecclestone gets underway in Munich, according to AFP
  • China passes changes to its environmental protection laws, imposing tougher penalties on polluters, the most sweeping revisions for 25 years (Reuters)
  • A car bomb in central Iraq has killed eight people, according to police, report AFP.
  • Russia’s Lavrov says he expects Geneva deal on Ukraine will soon be implemented in practical actions (Reuters quoting Russian news agencies)
Bank of Japan head to quit early
| Share this article
|

Bank of Japan Governor Masaaki Shirakawa is to step down three weeks before his five-year term was due to end.

That makes possible an earlier than anticipated shift to more aggressive monetary easing.

Japan’s Prime Minister Shinzo Abe has been pressuring the central bank to do more to lift the economy and had made it clear he wanted someone in the job who will be bolder than Shirakawa.

The governor’s term was due to end on April 8, but his two deputies’ are scheduled to leave on March 19. Shirakawa told reporters that he had informed the prime minister about his decision to leave early so that his successor and the new deputies can start their roles at the same time.

“We are going to work out without delay the schedule of submission (of candidates) to parliament for swift approval,” Akira Amari, economics minister in Abe’s cabinet, told reporters.

Abe led his Liberal Democratic Party to a landslide victory in a December lower house election promising to revive the stagnant economy by coaxing the central bank into aggressive monetary stimulus and boosting government spending.

Last month, the BOJ signed a joint statement with the government adopting a new two percent inflation target as a sign of its commitment to fighting deflation. It also announced a shift to “open-ended” asset buying.

But many investors were disappointed that even in taking unconventional steps the BOJ displayed a caution that has characterised Shirakawa’s term, delaying the “open ended” buying until next year and limiting its scope.

Not quitting in anger

In the final months of his term, Shirakawa had to endure mounting political pressure for action as Japan’s economy was slipping into its fourth recession since 2000.

But analysts took his decision to leave early as a genuine effort to smooth out the succession, rather than a final political statement.

“Governor Shirakawa is not a person who would leave his post in anger,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.

He said the outgoing governor was trying to simply bring the terms of the central bank chief and his deputies back into line. They fell out of synch when Shirakawa’s appointment was delayed five years ago after parliament had rejected the first candidate.

Copyright © 2014 euronews

More about:
| Share this article
|

Log in
Please enter your login details